Gold was unable to beat back a second day in a row of dollar strength, as hedge funds cut longs amid a day of chart consolidation. After recovering from a drop in midday European trading, gold is down solidly in New York.
Silver, however, is having none of it, after surging overnight to a two-month high. The “poor man’s gold” is down only the tiniest bit, trading right at yesterday’s levels for this time of day. This is the second day in a row that silver has outperformed gold.
In addition to the stronger dollar, gold is seeing pressure from yet another import tax hike in India, now at an eye-watering 10%. (see “India Raises Import Taxes Again, On War on Gold” for details.) Some of yesterday’s physical demand in Asia was from people buying as much as they could before today’s tax hike.
Retail sales in the U.S. in July were reported to have risen 0.2%, against expectations of 0.3%. June’s numbers were a +0.6%. This has sent Wall St lower for a third day.